Is it possible to establish a company in Dubai by proxy? Dubai is one of the most prominent investment and business destinations in the world, providing an advanced and attractive business environment for investors from all over the world. With the increasing interest in establishing companies in this vibrant emirate, many people wishing to enter the local market are wondering about the possibility of establishing a company in Dubai by proxy. This process may allow investors to overcome some of the challenges associated with local ownership, and provide greater opportunities to access different markets. In this article, we will review the requirements and procedures necessary to establish a company in Dubai by proxy, as well as the potential benefits and challenges that investors may face during this process.

Is it possible to establish a company in Dubai by proxy?

Yes, it is possible to establish a company in Dubai by proxy, but there are some requirements and procedures that must be followed. Here is an overview of this process:

Determine the type of company: You must determine the type of company you want to establish, whether it is a limited liability company (LLC), a branch company, or any other type.
Choose a local agent: Establishing a company in Dubai requires the presence of a local agent, who is a person or entity of Emirati nationality. The local agent can be a partner in the company or simply an agent who provides legal and administrative support.
Preparing documents: A set of necessary documents must be prepared, including a copy of the passport of the investors. The company’s articles of association. Approvals from the relevant government agencies.
Submitting the application: Submitting the company registration application to the Dubai Economic Department (DED) or the relevant authority (such as free zones if the company will operate in a free zone).
Obtaining a trade license: After the application is approved and all the required documents are submitted, you can obtain the trade license for the company.
Opening a bank account: After obtaining the license, you can open a bank account for the company.

Required documents to establish a company in Dubai by proxy

To establish a company in Dubai by proxy, there are a set of documents and papers required. Here is a list of the basic papers you need:

A copy of the passport of both the investors and the owner of the local agency must be provided.
A number of personal photos with a white background for the investors.
The articles of association must be prepared, which specify the details of the company such as name, purpose, and ownership structure.
Obtaining initial approval from the Department of Economic Development (DED) or the relevant authority, including submitting a proposal for the company name.
Documents proving the identity of the local agent must be submitted, such as a copy of his passport and citizenship certificates.
If the investor is working in another country, he may be required to submit a no-objection certificate from his current employer.
A document proving the address of the company’s office, such as a lease or property ownership.
Filling out and submitting the company registration application form, which can be obtained from the Department of Economic Development or the relevant authority.
Paying the required fees to register the company and obtaining the commercial license.

The importance of establishing a company in Dubai by proxy

Establishing a company in Dubai by proxy has many benefits and importance for investors. Here are some key points that illustrate this importance:

Access to the UAE market: Establishing a company by proxy allows foreign investors to enter the UAE market easily, opening up wide opportunities for trade and investment.
Facilitating legal procedures: Having a local agent helps speed up legal procedures, as the agent deals with government agencies and submits the required documents.
Compliance with local laws: The local agent helps ensure compliance with local laws and regulations, reducing the risk of getting into legal trouble.
Cost savings: Although there are fees for the agent, establishing a company by proxy can be less expensive than the costs associated with full local ownership, especially in some business activities.

Access to administrative support: The local agent provides administrative and practical support, such as managing licenses and registrations, which reduces the burden on investors.

Expand business networks: The local agent helps build business relationships and networks within the UAE market, making it easier for investors to enter new markets.

Benefit from economic advantages: Dubai offers many economic advantages, such as tax exemptions and commercial freedom, which makes establishing a company by proxy an attractive option.

Provide multiple options: Establishing a company by proxy provides investors with a variety of options, such as establishing branches of their companies or opening representative offices without the need for a large investment.
Establishing a company in Dubai by proxy is a strategic move for foreign investors, as it combines legal flexibility and access to markets, with local support that can contribute to the success of the business.

Etqan Company Services in Establishing Companies in Dubai by Proxy

Etqan Company provides a comprehensive range of services for establishing companies in Dubai by proxy, making it easier for investors to enter the UAE market. Here are some of these services:

Legal Consultations: Etqan provides specialized legal consultations to help clients understand local laws and regulations related to establishing companies.
Determining the type of company: The company helps investors choose the type of company that best suits their needs, whether it is a limited liability company, a branch of a company, or a representative office.
Providing a local agent: Etqan facilitates the process of finding a reliable local agent, ensuring compliance with legal requirements.
Preparing the necessary documents: Etqan undertakes the preparation and preparation of all documents and papers required to establish the company, including the articles of association and the necessary approvals.
Registration procedures: The company carries out the procedures for registering the company with government agencies, such as the Department of Economic Development (DED) or other relevant bodies.
Obtaining a commercial license: Etqan undertakes the process of obtaining the commercial license necessary to practice commercial activity in Dubai.
Opening bank accounts: Itqan helps clients open bank accounts for the company with local banks, making it easier to manage financial transactions.

Post-incorporation services: Itqan provides post-incorporation support services, such as managing licenses and renewals, and helping to deal with government agencies.

Expansion and growth consulting: It provides advice to investors on how to expand in the UAE market and develop businesses.
Itqan provides a comprehensive set of services that facilitate investors in establishing companies in Dubai by proxy, making the process smoother and more efficient. Relying on their local expertise, they help investors achieve their business goals faster and more securely.

How long does it take to establish a company in Dubai by proxy?

Establishing a company in Dubai by proxy is a process that requires careful planning and a good understanding of the steps required. Generally, the time required to establish a company ranges from 3 to 8 weeks, but this depends on several factors. Investors must also collect the necessary documents, such as passports, personal photos, and the articles of association. This stage may take from one to two weeks. An application is submitted for initial approval from the Department of Economic Development (DED) or the competent authority. Typically, this step takes one to two weeks, and the quality of the documents provided can speed up the process.

It involves preparing the necessary documents for registration and submitting the official application for company registration. If all requirements are met correctly, this stage can be completed within a week. It involves the process of obtaining the trade license and official registration, which can take an additional one to three weeks.

It is important for investors to be prepared to work with a trusted local agent to improve the efficiency of the process. Using the services of a consulting firm such as Itqan can help speed up progress, as they provide specialized expertise in all stages of company formation, making it easier for investors to focus on their business goals.

Timeframe for establishing a company in Dubai by proxy

Establishing a company in Dubai by proxy can take varying amounts of time depending on several factors, but in general, here is an estimate of the timeframe required:

Preparation and setup (1-2 weeks): This includes collecting the required documents, such as passports, personal photos, and information about the business activity. It also includes determining the type of company and choosing a local agent.
Obtaining initial approval (1-2 weeks): After submitting the necessary documents to the Department of Economic Development (DED) or the relevant authority, initial approval will be obtained, which is an essential step to begin the registration process.
Preparing documents and submitting the application (1-2 weeks): Preparing the articles of association and other documents, then submitting the official application to register the company.
Registering the company and obtaining the trade license (1-3 weeks): After submitting the application, the registration process and obtaining the trade license may take from one to three weeks, depending on the type of company and the speed of government procedures.
Total: In general, the timeframe for establishing a company in Dubai by proxy can range from 3 to 8 weeks.
Using the services of companies such as Itqan can help expedite this process, providing expert support at all stages.

In conclusion, establishing a company in Dubai by proxy is an attractive option for foreign investors looking to enter the vibrant business market in the UAE. This process offers multiple benefits, including facilitating legal procedures, ensuring compliance with local laws, and accessing a wide network of business opportunities. Although there are challenges such as the cost of a local agent, the benefits offered by this model can outweigh these challenges, making it a strategic option for success. It is important for investors to research and plan well, and seek specialized advisory services to ensure that their business goals are achieved efficiently. Thanks to Dubai’s favorable investment environment, establishing a company by proxy can be the beginning of countless opportunities in one of the fastest growing markets in the world.

Frequently Asked Questions About Incorporating a Company in Dubai by Proxy

Can I own the company outright if I use a local agent?
No, the local agent must own a certain percentage of the company (usually 51%), while you can retain 49% ownership.

Are there additional fees for establishing a proxy company?

Yes, there are fees for registering the company, in addition to the local agent’s fees, which may vary depending on the services provided.

What are the benefits of establishing a proxy company?
The benefits include easy access to the market, compliance with local laws, and administrative and legal support from the local agent.